Builders FirstSource reports record first quarter results

Builders FirstSource
Builders FirstSource

DALLAS — The dealer at the top of the recently released 2022 LBM100, Builders FirstSource, has reported its results for the first quarter ended March 31, including net sales of $5.7 billion, an increase of 36.1%.

“We started the year out strong achieving another quarter of record net sales, gross margin and Adjusted EBITDA, while also producing strong core organic sales growth of 15%. In addition, we continue to make progress investing prudently in our operations and delivering outstanding service to our customers as we work to overcome the supply chain constraints that persist throughout our industry. Our efforts to broaden our value-added products, which saw core organic sales up 31%, alongside our strategic investments in digital, are helping our customers get their jobs done quickly, on time and cost-effectively. The success we have achieved is directly attributable to our hard working and dedicated team members who go above and beyond each day to help us maintain our position as an industry leader,” said President and CEO Dave Flitman in a press release.

First Quarter 2022 BFS highlights include:

  • Net sales of $5.7 billion for the quarter increased 36.1% driven by double-digit core organic growth, commodity inflation and acquisitions.
  • Net income grew 270.6% to $639.6 million, or $3.56 per diluted share, and adjusted net income increased 136.5% to $700.8 million, or $3.90 per diluted share.
  • Adjusted EBITDA increased 119.8% to a first quarter record of $1.0 billion driven by commodity inflation, double-digit core organic growth, acquisitions and strong demand in the residential housing market.
  • Strong quarter-end balance sheet with a net debt to LTM Adjusted EBITDA ratio of 0.9x and liquidity of $1.2 billion.
  • During the quarter, the Company repurchased approximately 3.6 million shares of its common stock for approximately $286 million.

“We are excited to welcome the Panel Truss and Valley Truss team members to the Builders FirstSource family and look forward to their contributions to grow our value-added products business. Looking ahead, we believe the housing industry remains resilient and underbuilt, and we have seen strong underlying demand in new housing construction into the second quarter. Furthermore, we are maintaining our focus on allocating resources to outpace market growth in our higher margin value-added products while investing further in our digital solutions platform to advance our goal of transforming the homebuilding industry. For 2022, we have increased our expectations for growth and significant free cash flow generation. We remain committed to deploying capital to high return internal investments, accretive bolt-on M&A and share repurchases,” Flitman said.

- Sponsor -

Peter Jackson, CFO of Builders FirstSource, added, “We are pleased with our remarkable first quarter results as well as our continued M&A momentum. We remain committed to a balanced approach to capital deployment through 2022 and beyond as we leverage our strong cash flow to pursue additional accretive investments in our operations while executing against our share repurchase authorizations. We expect to generate free cash flow of $2.0 billion to $2.4 billion in 2022, reflecting disciplined working capital management and our ability to capitalize on our industry-leading product portfolio. We look forward to building on a very successful quarter as we continue to focus on our value-added products, share gains and returning additional value to our stakeholders.”

Stay Updated

Get our email newsletter with LBM industry trends, data, new products, and best practices.